Banks have been so upset by the regulatory standards proposed by the European System of Central Banks and the Committee of European Securities Regulators (ESCB-CESR) they have started a public spat that demonstrates a breakdown in communication.

The trouble began last year when ESCB-CESR published its list of proposed standards, based on the 19 recommendations for securities settlement systems issued by a joint working group of the Committee on Payment and Settlement Systems and the International Organisation of Securities Commissions in 2001 (CPSS-Iosco).